President Trump has made it clear that US leadership in AI is a priority for his administration.
He has outlined a broad strategy to secure US dominance in AI, including promises to boost private-sector investment by streamlining the permit process and relaxing certain regulations.
However, doubts remain about whether Stargate represents a significant advancement compared to previous initiatives.
Elon Musk Not on Board with Stargate
Not everyone in the tech industry is sold on Stargate, and Elon Musk is among its most vocal critics. The xAI founder has raised doubts about the project’s financial feasibility, questioning whether some partners can deliver on their commitments.
When Musk first heard of Trump’s announcement, he expressed scepticism.
Taking to social media platform X, he wrote, “They don’t actually have the money,” further claiming that SoftBank has less than $10 billion secured. “I have that on good authority,” he added.
In his following posts, he even wrote that Satya Nadella, CEO of Microsoft, has money to fund the project, unlike Altman.
In response, sources close to SoftBank pointed out that the company has $24.3 billion in cash reserves as per its latest earnings report and is prepared to take on additional debt to support the project. They also highlighted its ability to access more capital if needed.
CNN Business noted that Musk’s criticism of Stargate shouldn’t come as a surprise, given his unresolved history with OpenAI.
Musk is currently engaged in a lawsuit against OpenAI and its CEO, Sam Altman, who was present at the White House for the Stargate announcement.
Musk has accused OpenAI of straying from its original nonprofit mission by reserving some of its advanced AI technology for private clients.